Developing a North Ayrshire approach to Commercialisation “Thinking Differently”
Presentation Overview Context/Our approach • Development work undertaken to date • Existing commercial activity • Proposed Commercialisation projects • Moving Forward : Strategy and Culture • Discussion •
Our approach on one slide Commercial Manager – Work Plan • Agree a Framework – develop culture • Develop suitable pathfinder projects • Test the Business case approach (APSE) • Develop and finalise Strategy • Monitor, Review and Learn from our experiences • Embed culture • Create more commercial opportunities •
Background: Work carried out to date Diminishing budget – deliver sustainable local services • Some pockets of commercial activity • Leadership Project – Reviewed Income Generation • opportunities Leadership conference – Senior Managers buy-in • Extensive Elected Member sessions/discussions • Council budget setting meeting agreed – “Develop strategic • approach to realise income from commercial operation of services”
Background: Work carried out to date Executive Leadership Team – Support • Income Generation is complementary to ongoing work • Efficiencies/Transformation/Demand Management • Deliver commercial income whilst retaining a public service • ethos Work with APSE – Business case approach •
Work with APSE Commercialisation Network – learning from others • Nottingham trading (Robin Hood Energy, Commercial • waste, parking, fleet maintenance, advertising, facilities management) Mansfield Council – hotel project • Dumfries and Galloway – excellent work • WESTCO – marketing and advertising •
WESTCO An ALEO set up by Westminster City Council: Commercial mindset/Governance model • Asset audit (£500k - £5m in 4 yrs) • Annual revenue £2.7m/£350k • Invest in local area public realm • Different but – Art of the possible? •
Work with APSE Governance framework – 5 strand business case approach: • Strategic case • Legal case • Financial case • Commercial case • Operational/Technical case • Elected Members – Appetite - What is right for us? • Review potential impact on local businesses • Must meet with Council aims and values •
Existing Commercial Activity: Limited but developing at different pace across Services • Commercial Waste service (£1.7M income v est. £300k profit) • Sale of landfill gas (£300k income) • MOTs via vehicle maintenance workshop • Facilities Management: Catering • Events catering • Saltcoats Town Hall • The Portal • Cunninghame House Café • Growth over 2 years from £100k to £500k •
Commercialisation Work Plan Business like – commercial lens • Created a Commercial Manager role – funded then self • sustaining – currently recruiting Develop a commercial work plan – 5 key strands • Review of service delivery costs – existing subsidy • Review of fees and charges • Maximise existing commercial activity • Review what currently procuring in – can we do? • New income streams •
Proposed Commercial Activity: (pathfinder projects being considered/developed) White label energy – Cabinet approved approach • MOTs for Scottish Ambulance Service • Extension of staff “pool cars” to community use – car club • Commercial Waste service growth : Marketing plan • Parking charges – approval at Council budget setting 2018 • Expanded Catering Services - Events and other • business opportunities
Proposed Commercial Activity: (Potential pathfinder projects) Property Factoring/Design Services • Housing Assoc. Repairs and Maintenance • Public counter : Building Services stores • Bus hire • Marketing space (roundabouts etc) •
Proposed Commercial Activity: (Potential pathfinder projects) Car park maintenance • Grounds maintenance expansion and garden assistance • Pest control expansion • Vehicle and fleet management services • Wheelie bin cleaning • Wheelie bin pull out service •
Proposed Commercial Activity: (Potential pathfinder projects) Contact centre – 24/7 • Local lottery – link to participatory budgets? • Regeneration/Hotel development • End to end funeral care – contentious •
Our approach on one slide Commercial Manager – Work Plan • Agree a Framework – develop culture • Develop suitable pathfinder projects – phased/achievable • Test the Business case approach (APSE) • Develop and finalise Strategy • Monitor, Review and Learn from our experiences • Embed culture • Create more commercial opportunities •
Thank You … . Questions/Discussion?
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